Hanoi (VNA) – Remittance is an important factor in enhancing the liquidity of
Vietnam’s real estate sector, as the amount of the money flowing to Vietnam in
the recent years has continuously increased, according to market watchers.

In 2016, due to the
influence of the presidential election in the US, the amount of remittance to
Vietnam was only 9 billion USD, a level less than expected. But in 2017, the
figured recovered to 13.8 billion USD, up 16.8 percent over the previous year,
making a new record height. In Ho Chi Minh City alone, remittance the same year
hit 5.2 billion USD, a rise of 4.5 percent year on year.

Statistics from the
State Bank of Vietnam, Ho Chi Minh City branch, showed that in the first half
of this year, the amount of remittance was estimated at 2.45 billion USD, up
nearly 20 percent over the same period in 2017. Of the total, the majority came
from the US with over 60 percent, and Europe with more than 19 percent.

As many as 72 percent
of the remittance was poured into production and business, 22 percent into real
estate, and 6 percent for personal spending. As a result, each year, the real
estate sector receives about 2.5 billion USD, helping improve the market’s
liquidity.

Real estate firms held
that the millions-strong Vietnamese community in the US and Europe and Asian
countries with high demand for housing when they retire or returning the
homeland for working and investing makes the market section targeting overseas
Vietnamese (OV) attractive.

The branch predicted
that the remittance to Vietnam in 2018 will increase about 20 percent over 2017.

However, many experts
asserted that although real estate for OVs is attractive, products for the
group remain few.

A survey by Savills
Vietnam suggested that along with basic aspects such as location and prices,
major factors of foreign customers and OVs’ interest while investing in
Vietnam’s real estate include safety, security as well as added services following
transactions.

Considered as a
newly-emerging and promising market, Vietnam is a favourite destination for OV
investors. In order to optimise the capital and remittance, in particular in
real estate, experts held that it is necessary to ensure the transparent and
safe development of the sector.-VNA